Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Incentives and equitable economic development feb 2018


Published on

Smart Incentives addresses ways that community leaders can better connect their incentive programs with equitable economic development goals.

Published in: Economy & Finance
  • Be the first to comment

  • Be the first to like this

Incentives and equitable economic development feb 2018

  1. 1. Using Incentives to Achieve Equitable Economic Outcomes ELLEN HARPEL EQUITABLE ECONOMIC DEVELOPMENT FELLOWSHIP WEBINAR FEBRUARY 2018
  2. 2. About us  Smart Incentives helps communities make sound decisions throughout the incentives process
 ü Analyze incentive offerings and program design ü Apply the Smart Incentives 4x4 framework for program management ü Offer access to high-quality business intelligence, data, and analytical methods to guide decisions ü Improve evaluations and reporting on program results 2 © 2018 SMART INCENTIVES
  3. 3. Why do we use incentives?  To achieve our community’s economic development goals
 ◦  Jobs ◦  Worker training ◦  Business development ◦  Investment ◦  Downtown revitalization ◦  Brownfield redevelopment ◦  Quality of life and quality of place ◦  Strengthen tax base  Incentives are not just about winning a deal. Smart incentive use is always connected to a larger economic development strategy. © 2018 SMART INCENTIVES 3
  4. 4. © 2018 SMART INCENTIVES 4
  5. 5. How to establish clear and measurable program goals  Review your portfolio of incentive offerings  Examine the stated purpose of each incentive program ◦  Does the program serve your current economic development strategy? ◦  How does it relate to equitable economic objectives?  Consider how the program is actually used ◦  What types of projects have been incentivized over the last 5 years? ◦  Do program guidelines and scoring incorporate the equity themes that are important in your community?  Are there gaps in program offerings? Are new program guidelines needed?  Articulate the link between incentive programs and equity goals © 2018 SMART INCENTIVES 5
  6. 6. Examples of equitable economic development goals  Grow good accessible jobs that provide pathways to the middle class  Increase economic security and mobility of vulnerable families  Cultivate homegrown talent / career pipeline  Create healthy opportunity-rich neighborhoods © 2018 SMART INCENTIVES 6
  7. 7. Examples of program metrics  Jobs: ◦  Wage standards ◦  Middle skill jobs ◦  Procurement/purchasing patterns  Increase economic mobility ◦  Targeted hiring ◦  Training provided/completed  Career pipeline ◦  Sector-specific workforce training program completions and placements  Neighborhoods ◦  Improvements in parks, services, amenities, food systems ◦  Transit, water lines, broadband in underserved neighborhoods ◦  Increase access to high-quality affordable homes © 2018 SMART INCENTIVES 7
  8. 8. What makes a good metric?  Outcome-oriented . . . ◦  Based on economic development strategy ◦  What are you trying to achieve? ◦  What does the community want to achieve?  . . . with reasonable a connection to program inputs ◦  Logic model to demonstration the linkages  Data availability ◦  Appropriate timeframe ◦  Reasonable cost to obtain ◦  Data quality/validity © 2018 SMART INCENTIVES 8
  9. 9. Incorporate equity goals at each stage of the incentives process  Be clear and intentional on equity goals when implementing incentivized projects  Examples:
 ◦  Recipient – RFQ ◦  Deal – upfront project review (e.g. scorecards) ◦  Compliance – performance agreement terms ◦  Effectiveness – tracking and reporting on outcomes © 2018 SMART INCENTIVES 9
  10. 10. © 2018 SMART INCENTIVES 10 Community engagement is “indispensable to equitable development.”
  11. 11. How to communicate equity-related outcomes  Communicating expectations to incentive applicants ◦  Consistent, sustained language on what the city is trying to achieve ◦  City is an investment partner, not a project supplicant ◦  City’s ROI may include making progress toward equitable outcomes  Communicating results to your community ◦  Transparent data on program usage ◦  Reporting on compliance with project terms and equity outcomes ◦  Did this deal/this incentive program generate net benefits for the community? Did it contribute to the equitable economic development goals the city set for itself? © 2018 SMART INCENTIVES 11
  12. 12. Sustaining the commitment  Tie EED to existing incentive program goals  Act as an investment partner, not a program manager  Don’t end community engagement once the project has been approved or even completed  Keep the equity conversation from becoming inequitable © 2018 SMART INCENTIVES 12
  13. 13. Summary 1.  Equity goals and incentive program purposes often overlap. Make the connection explicit. 2.  Be intentional in incorporating equity goals during each stage of the incentive process 3.  Choose (carefully) metrics to assess progress 4.  Report on promises made and whether community expectations were met 5.  Use this process to sustain the commitment to equitable economic development © 2018 SMART INCENTIVES 13
  14. 14. Contact  Ellen Harpel
 President  571/212.3397
 @SmartIncentives 14 © 2018 SMART INCENTIVES